A power system consists of a power generation part, a power transmission part, a power distribution part, a power utilization part and so on. In order to maintain a safe and stable operation of the power system or to restore a security of the power system, and to ensure a supply of power, and to meet a requirement such as a voltage and a frequency quality, the power system requires enough frequency regulation, spinning reserve and other ancillary services. With regard to a problem how to determine the frequency regulation, the spinning reserve and other ancillary services in the power system, there may be many different methods.
In a vertically integrated electricity system, it is considered an obligation that generators provide the frequency regulation, the spinning reserve and other ancillary services, however, if the ancillary services are provided freely for a long-term, it may lead to a low initiative of a power plant for maintaining the security and the reliability of the power system.
In an electricity market environment, the power plant is an independent market participant and should get a corresponding economic compensation for providing the frequency regulation, the spinning reserve and other ancillary services for the operation of the power system. In a county with a marketization of the electricity, usually, the frequency regulation, the spinning reserve and other ancillary services in the power system are determined by a mode of market competition according to ancillary service bidding data of the power plant, and a cost of the ancillary services is ultimately borne by users. This method may lead to the higher ancillary service price reported by the power plant, and enable that the cost of the ancillary services soar, and result in a disorder market competition, and affect the safe and stable operation of the power system.
In addition, in the electricity market environment, both the power plant and the Power Grid Corp are independent market participants, so the power plant and the Power Grid Corp cannot completely know each other's private information, and this condition is known as an information asymmetry. The conventional various methods do not have a function to find a real cost of the frequency regulation, the spinning reserve and other ancillary services, thus resulting in a disorder market competition in the ancillary services and affecting the safe and stable of the operation of the power system.